Ripple (XRP) has been in the headlines a lot lately. There has been a lot of positive talk about the cryptocurrency, including the recent announcement of a partnership with UAE Exchange company Finablr. All things going to plan, the partners will go live with a blockchain service by Q1, 2019 supported by oa small number of Asian banks. The partnership will take advantage of RippleNet, a decentralized global network of banks and payment providers which make use of Ripple’s distributed financial technology, which provides real-time messaging, clearing and settlement of financial transactions.
This is another positive step for Ripple, whose technology is also reportedly being tested by global money transfer giant Western Union.
American Express,is another major brand that has reportedly shown interest in Ripple’s technology as a way to improve how financial transactions take place across the world, with Carlos Carriedo explaining that not only is blockchain something AMEX is looking at, but that Ripple’s cross-border transaction system was “very transparent and seamless.” It is not clear whether his comments were endorsed by the organisation.
There does, however, appear to be some strong resistance to Ripple’s advance – namely the outright refusal to date of leading exchange platform Coinbase to add the currency to its portfolio.
Over the last 12 months, Coinbase has listed a number of other cryptocurrencies but not yet XRP, and investors and observers are now beginning to doubt if the digital platform is willing to list Ripple XRP – even when it has met all standards. So what’s behind this seemingly unjustified move by Coinbase?
A lot, it seems, hangs on the outcome of a legal case in the USA surrounding the issue of whether Ripple can be considered a security, a question which lawmakers in the US seem to believe should go to a jury. Until a final decision is made, it is likely that Coinbase will stear clear of listing XRP, due to the potential of serious implications should the cryptocurrency indeed become an official security.
Whilst on the one hand this is an unfortunate obstacle for a currency that is becoming one of the strongest players in the market, the very fact that such a case is being challenged is also recognition of the credibility of the coin.
We’ll be watching with interest to see where things go for Ripple in 2019.